Steps For New Product Development

Steps For New Product Development

Step one: Idea Generation:-

product development start with one of idea. Idea can come from interacting with various groups and using creativity-generating techniques. For example, Karshanbhi Patel, founder of Nirma Washing Powder, his idea to deliver Washing powder at lower cost.

Idea comes from different direction.

Scan and analysis of customers problem which they are facing.

Market Research

Suggestion from target audience, employee, partners

Mind mapping

New idea arise from lateral marketing that combines two product conepts or ideas to create new offering.

For example

Gas station stores            = gas stations + foods

cyber cafes                         = cafeteria + Internet

Sony Walkman                  = audio + portable

2nd Step: Idea Screening:-

Screening idea means look out suitability, look at ROI, affordability, market potential. before investing on idea, need to consider this all possibility

In Company, Idea avoid idea in two times of errors: DROPS- error, it's occurs, when company rejected good idea without understand it. : GO-error, company permits a poor idea to move into development and commercialization.

3rd Step: Concept Development and testing:-

Product idea convert into several concepts. like, who will use this product?, What primary benefit should this product provide?, When will people use product?

Product testing means preparing and presenting product concept or physically, and offer to customer and analysis the reaction of product. The more the tested concepts resemble the final product or experience.

4th Step: Develop Marketing Strategy

Marketing strategy at primary stage can be divided in three part, First: Target Market Size, Structure and behavior. Second: outline plan price, distribution strategy, and marketing budget for a year. Third:  plan for long-run sales and profit.

5th Step: Business Analysis:-

After development of marketing strategy and product concept, time to analysis business attractiveness. look at out, the cost, sales, and profit that satisfy company's need.

Their need to be check Estimated total sales, estimated cost and profit, Risk analysis, breakeven analysis. If result are satisfactory time to move to the development stage.

6th Step: Product development:-

After product approval, next stage to technical and R&D. In R&D, a prototype (Limited model) model will be created. Its goal to find safety, design and specification.

Customer tests, when prototype is ready, it's go to customer test before they enter the market. Basically, company do two type of testing, Alpha testing: the product testing within the firm to see how to performs in different applications. Beta testing: with customers.

7th Step: Test Marketing:-

Test marketing is different from consumer test. In test marketing, company chooses few representative cities, and the sales force tries to sell the trade on carrying the product and giving it good shelf exposure.

The company puts advertising and promotion campaign similar to the one it would use in national marketing. Test marketing measure, the impact of alternative marketing plans by varying the marketing program in different cities.

8th Step: Commercialization (Launch)

When the concept has been developed and tested, Final decision need to be made to move the product to its launch into the market. Most new-product campaigns rely on sequenced mix of market communication tools.

When(Timing), Where(Geographic strategy), To Whom (Target-market), How (Introductory  market strategy)